Explain how we can handle heteroskedasticity by using Weighted Least Squares?
Elementary Linear Algebra (MindTap Course List)
8th Edition
ISBN:9781305658004
Author:Ron Larson
Publisher:Ron Larson
Chapter5: Inner Product Spaces
Section5.CR: Review Exercises
Problem 62CR
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Explain how we can handle heteroskedasticity by using Weighted Least Squares?
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In regression analysis, heteroscedasticity is a systematic change in the spread of the residuals over the range of measured values. It violates the assumption made by Ordinary least square that all the residuals are drawn from a population that has a constant variance (homoscedasticity).
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